MPs say MoD’s £7.3bn savings target under ‘serious doubt’

The Ministry of Defence will be left unable to complete its shopping list of new ships, aircraft and combat vehicles because of its inability to achieve efficiency savings, according to MPs.

A report by the Defence Select Committee said there were serious doubts that the MoD would hit a £7.3bn savings target in order to pay for a range of military equipment and support, including eight frigates and nine aircraft.

Under the Strategic Defence and Security Review 2015, the government pledged to spend £178bn on equipment over 10 years.

Committee chair, Conservative MP Julian Lewis, said: “It is extremely doubtful that the MoD can generate even more efficiencies from within its already stretched budget on the scale required to deliver its equipment plan.

“This will inevitably lead either to a reduction in the numbers of ships, aircraft and vehicles or to even greater delays in their acquisition.”

The report also said MoD permanent secretary Stephen Lovegrove appeared to have been confused over an “inconsistent set of targets”.

The committee called on the MoD to review its efficiency plans and set up an “efficiency tracker” to detail when, where and how efficiencies are to be made.